Xero coffers bulge with $60m raising

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Xero has raised $60 million by selling 10 million new shares at $6 a share to United States investment companies Matrix Capital Management and Valar Ventures.

Xero chief executive Rod Drury, fellow co-founder Hamish Edward and director Craig Winkler have also sold an additional $22m of their own shares in Xero to the US firms, diluting their personal stakes in Xero.

Drury's stake in Xero drops from 21 per cent to 18.5 per cent. He said he netted about $5m from the sale of 833,000 shares.

Matrix has invested $58m in Xero through the transactions, Xero said, while the value of Valar's additional investment was $24m.

Drury told analysts earlier this month that Xero might seek to raise additional capital in order to invest in a call centre in the United States' mid-west to boost its growth in the country, though a spokesman had later sought to play down that speculation.